Tesla Stock Falls After Needham Downgrades to Underperform

Tesla is finally making enough cars, it just can't sell enough of them. Cancellations for Model 3 orders have picked up in recent weeks and refunds now outpace deposits for Tesla's new mass-market electric car, according to Needham & Co. analyst Rajvindra Gill. Tesla disputes that.

Needham downgraded the stock to underperform from hold, saying that the stock is overvalued “despite falling 16% from its June 2017 peak.” It is also cited the expiration of customer credits and increased competition from competitors, as well as high manufacturing costs and margin pressure, as reasons for the bearish outlook.

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Tesla is finally making enough cars, it just can't sell enough of them. Cancellations for Model 3 orders have picked up in recent weeks and refunds now outpace deposits for Tesla's new mass-market electric car, according to Needham & Co. analyst Rajvindra Gill. Tesla disputes that.

Needham downgraded the stock to underperform from hold, saying that the stock is overvalued “despite falling 16% from its June 2017 peak.” It is also cited the expiration of customer credits and increased competition from competitors, as well as high manufacturing costs and margin pressure, as reasons for the bearish outlook.

Anyone who has worked in production at a large factory will tell you that you don't want the products that are so rushed that tent risings and 20 hour work days for weeks and months on end are necessary just to meet some imaginary target by wall street. And somebody please tell me why in heck you would want to pay a large deposit on an unproven product that is supposed to last as long as a car. In the end, you have to see with some clarity as opposed to the Tesla spin machine stories. Result: cancelled orders and not enough new orders to sustain even current production numbers. Watch and see.....